Streamline legal agreements with Pipeline Management in Legal Agreements

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thank you for joining us today for Jennifer Shelton association our webinar Wednesday program we are coming to you live from Washington DC our webinars are every Wednesday in are provided complimentary they're recorded and can be downloaded from our website and youtube channel which now holds over 300 of our government contracting webinars in the interest of time we do not take questions so if you have questions for our speaker we will have his information on the last slide of the presentation today a special thanks to our education will sponsor the National Veterans small business Coalition for making these webinars possible DnB SPC is the largest nonprofit trade association for veterans please visit their website for more information and now a little bit about us we work with US federal government contractors including products service and software firms our services range from market analysis reports to contract vehicles and compliance more information is on our website we will be hosting a virtual conference on hot topics and government contracting on June 23rd please register using the link in this slide we also have opportunities for your organization to advertise in our newsletter we now reach 19 over 19,000 600 subscribers and this includes both contractors and government contact us for pricing information with the emails from your screen and now to introduce our speakers skip Blackburn welcome skip we are glad to have you here with us today and I'll turn the floor over to you thank you very much I appreciate it and welcome everybody today we're going to talk a little bit about like blind management from an executive point of view and and just talk about some different things to look about look at and think about during that process you can go next and next slide please thank you so well so just a little bit about us as well we're experts in in government contracting support and we have two pieces to our business one is developed we've developed the owning federated software designed as an executive beedi life cycle software system called capture exec and we sell that all throughout the u.s. to all government contractors next please and in addition we have over 75 expert consultants both pre BMP and BMP support to support every aspect of your company as you work to sell and and win government contracts the word full scope full scale organization to support government contractors specifically next please so so the question is again from an executive point of view what should you be looking at on a regular visitor basis to manage both the healthier pipeline and the healthier business obviously health the pipeline is important projected revenues so that you can see where you're going and how you're going to get there activity of your sales team to make sure they're doing the same repetitive processes on every opportunity progressing and shaping of the deals so that you can make them more winnable your key wins for gate reviews and those are really important to pull the plug on deals sooner so you don't spend of acquisition costs that you don't need to budget spend how much you're spending on every deal and how much money you have to spend over the year and fixing things if it's broken and that's all these are really important for executives to spend time on on a regular basis to make their business as strong as possible next please so if you do those things how does that help your company be bigger smarter better faster well it improves win ability across every deal that you have in your pipeline your revenue goes up because you're winning more deals and you do that by limiting less deals right pulling the plug sooner on opportunities that you're already destined to lose and decreasing your cost of acquisition both your pre B and P which is a smaller dollar amount but your B in P costs or large dollar amounts again by pulling the plug sooner on opportunities you're already not in a position to win and it's a really important concept and create better better opportunities better deals for every win and and the point there is if you decide you're gonna bid on price to win a deal and you keep lowering your price and eventually you win a deal that may not be a great deal for you to deliver over the next five years because you have to put cheaper less experienced people in place and that could affect your seat bars or your business process or your delivery process so if you win better deals deals you've already shaped deals that government loves you deals you understand better those deals are going to be better for you to manage the delivery of our next please so what is a pipeline so just so you know a pipeline is a list of your opportunities staggered across different people different divisions different stages so that you can anticipate predict the future process of of what's coming in terms of predictable revenue and predictable delivery expectations so that you can have the right personnel at the right time for the right costs so it's really important to have any type of citizen whether it's a spreadsheet or a software package of some type that truly manages the aspect of listing deals and and giving you the ability to shape those deals and measure those deals of whether it's by P win or by a deal shaping calculation of being able to monitor a measure of that process next please so an opportunity if you open up a deal of the own certain software displays different ways you know we break down opportunities into smaller summary cards so it's easy to manage what you're doing for each aspect at the right time during that shaping process and it's really all about being in front of the government on a regular basis finding out where the pain points are what their activities are what they're trying to accomplish so that you're in control of shaping the process whether you're shaping it to an IDIQ that you own where you have less competition or better pricing than your competition or or doing a great job at a blackhat process so that you understand who's bidding against you how they're bidding and how you should bid in response to that but it's all about collecting appropriate data Waggin whether it's in a spreadsheet or a software system or on scraps a piece of paper what matters is that you're meeting with the government and you're shaping the process next please so I've been doing this a long time and the 30 years I've been out doing complex captures whether I owned a business work for a company ran a business it was all about managing the expectations of the personnel and and it was always a ten to one rule right if you wanted to win ten deals this year how many deals you need in the pipeline how many deals do you need to bid to win ten and the old old-school rule was always you needed 10x in your pipeline to expect to win 10 so you break that down if you do X wins whatever that is and you your submits need to be X by 10 your captures need to be twice your submits your qualify it's 3x of your captures and your prospects two and a half to make sure there's enough in the top of the funnel to run your business for the next several years and that's a constant process next slide please so when you're looking at 10x if you need 10 wins then you need 100 submits 200 capture 600 qualified and 1500 prospects in your pipeline so that you can manage those through to win those 10 a next slide please so we're going to do a little math exercise just so you can see how this works you know if you come up with some cost factor for acquisition cost of acquisition you know I put a fairly low number in at a 15 thousand for pre BMP and 110,000 for being p on a single deal in my experience over the last 30 years you know I've spent you know at certain times running a must-win of complex capture I spent one point seven million dollars in B and P costs to win that deal so we've had almost a two million dollar cost of acquisition and we needed we've got we got out of it the volume that we needed but this is a very low estimate assuming that you did some outside support for BMP and you had some travel expenses but everything else has done in-house with covered costs a necklace so if we assume that our revenue on one deal was fifty million dollars as an average and your gross margin at eight percent is four million dollars then our ten wins would be a half million dollars in revenue and our gross margin would be forty million dollars that we get I have two expenses the next please so finally if our gross margins four million dollars on a deal on our cost of acquisition is $125,000 then our gross margin that we receive is 40 million dollars over the ten deals we win our cost of acquisition is 12.5 million dollars for their 100 submits we had to do to win those 10 and you can see our margin seems great 27 a half million dollars great job but our cost of acquisition is 31% which is just a tremendous weight of coming right off your bottom line trying to secure these ten wins most companies plan for this most company most of the larger companies around the Beltway aren't or less concerned about what the cost of acquisition is and they're more concerned about what the revenue is to match their quarterly Street pulse that they spend this amount of money on a regular basis to manage their process next please summers have been telling us you know as they use more sophisticated software and help them get rid of deals sooner that instead of a ten to one ratio they're getting closer to a four or five to one ratio which is reducing their cost of acquisition significantly so next please so again as our example spins down our Ford 4 million turns into 40 million with our 10 wins if we're down to a 5 to 1 ratio we're only spending six and a quarter million dollars for passive acquisition which improves our margin and reduces our cost of acquisition and a 15% which is a much more reasonable expenditure to win forty million dollars and retain that margin in our company as an investment for the future so it's really important to steer away from that 10 to one rule by better managing your pipeline and your process next please so again you mat you if you better manage your pipeline then if you don't manage my son you're wasting money so if you better manage it then that's really important so the question becomes how do you fix this spend problem in that process so next next please again we've kind of chatted around this the the biggest way you can win more and spend less getting there is to kill deals sooner so you stopped bidding on opportunities that you're already set up to lose if you haven't talked to the government if you haven't done all the things you need to do you're already going to lose that deal next please so we're going to show a couple examples of ways to do that you know if you can have used a spreadsheet or have other manual processes make sure you're computing a score for every deal really important to no across all your deals that you're managing for your sales team or your organization where each one stands and where you are in the acquisition process so so create some type of repeatable scorable process on how well your capture team your sales team is doing shaping the government's opinion of what your company can do how you would compete strengths and weaknesses of you and your competitors all those things are vitally important to conveying convinced the government of on every deal and then again it comes back to stop bidding on deals you've already lost right if you're not shaking the deal you don't know anything about the cup the government what their interests are what their pain is what their budget is who's boots got the weight on their shoulders I can guarantee you your competitors do and if they're shaping the deal and you're not you've already lost so it's really important for you to keep track of that and develop a regular process for your your sales team a regular set of questions a repeatable set of questions so that they can go after that each government customer for each opportunity and ask the same leading questions to find out from the CEO from the ko from the PMS and from the funding sources all those different parts of the organization all need to be asked a similar repeatable set of questions so that you can truly understand what reality is from the customer standpoint and how you can win them over so that when they read the responses your response is the one that resonates you're also of course want to compute a Appy win and again it's really important most in the past it was all manual process and the sales team would just self evaluate each deal and say gosh this is a we probably have a 10% chance of winning or we have a 98% chance of winning all completely speculative and off-the-cuff there's no there were no rules in place on how to do that so it's important again as you run a company or run a sales organization to have a way to repeatedly compute automatically a P win score for every deal so that you understand if you have a low P win or a low shapingg score get out of that deal stop spending money move on to a deal where you have a better opportunity to win next please so again if you're tracking things in a spreadsheet or in a software system like we shown here you'll just make sure you have some type of scoring mechanism or how well you steal a shape and what the P win is for the deal so that your company can compare apples to apples deal deal and know exactly which deals to continue with and which deals to stop spending money on next please oh again in our in our software we map out all your wins and losses so that you can get a scatter chart that predicts what your percentage should be at each different gate review time so that you can better monitor and manage what that number is for your company and we had a customer of ours that did it manually back in the old days they went back three years analyzed every single deal in the system they want or lost what the shaping percentage was what the P wind percentage was when they won or lost and they mapped it all and when they brought up their map they determined that if the shaping percentage was 65% or greater they want 85% of those deals and if was 64% her load lower they lost 75% of those deals so it became quickly clear that that shapingg percentage truly dictated their win-loss ratio and so at gate review time they they pull the plug on deals that aren't a high enough score regardless of how excited the sales team is that this is a absolute deal great deal and we can't lose so again it's really important to manage and monitor these types of metrics on a regular basis so that you can improve your business next please another example of how to improve your p-wing is to fix what's broken right very very few companies do this well and and what's important is that you track why you're losing deals I work for one of the bigs around the beltway you're running one of their organizations and you know I met with the CEO when we first got there and the question is you know we've been 5,000 deals a year do we know why we're losing and the answer that came back from all this support people around the table was it's not ever tracked we don't know why we lose we only know that we win enough to do what we need to do so it really hit home that without tracking why you're losing you have no way of fixing what's broken so if you lose every deal because of a low technical rating from the government you can fix that but you have to know that's why you're losing so you can get more compelling writers of two to make that but easier for the government to read you can stop bidding on technologies that you can't prove to the government that you're good at doing the past performance or other issues you can buy M&A in a company that has experts on that on technology so that you you you end up with that experience and that expertise and then you would stop losing because of low technical rating same for non competitive pricing if you're losing because of price there's many many different level levers you can pull to win those deals and again it's really important for you to manage that on a regular basis so tracking again and whether you're in a spreadsheet or in a software package make sure it can track why you're winning and why you're losing next please so again if you have software you can manage those Peaks and see why you're winning why you're losing and then fix each quarter fix why you're losing and guess what you'll stop losing more and you'll start winning instead of losing which is really important next please so you know how do you improve your shaping and peewit well you know the important thing is you must be in front of the government you know you can't you know the old adage is if the first time you've read about this opportunity on gov win you've already lost but by the time Dublin hears about it gets it updated and all that all your competitors have already been out in front of the government for the last two years shaping and offering them support becoming their best friends and and giving them all the reasons why they should pick them and why they should not your company if you're in front of the government you'll always know when the pulse and temperature changes because you're always in front of the people that are making the decision the people on the source selection board the people that will be managing the projects going forward all those people are vitally important to be in front of on a regular basis and and that's crucial to solving these issues is to be in front of the government again the commanding officers are SES is the or cos that are running the contracts the PM team that will be managing the winning contractor in the implementation and process a funding source that drives how the receiving organization has to think and feel about their deliveries all those - and of course the source selection board folks so all those different aspects your sales team needs to be in front of on a weekly basis to make sure you're the company they remember on a regular basis next please that's our presentation for today again it really revolves around a key issues of being in front of the customer measuring how well shaping is going measuring your P win both on a repeatable process and and then monitoring that in a spreadsheet or in software so that you can analytically day-by-day measure the healthier business and measure the healthier pipeline and run your company or your division or your sales team in that perspective and you will significantly improve your wins improve your revenue decrease your cost of acquisition and stop losing deals you've already lost so that's my soapbox I appreciate everybody's time today and I hope you have a fantastic week take you skit for a great presentation and sharing your time with us thank you to everyone who joined us the recording will be on our website and youtube channel within the next 24 hours I just want to remind everyone about our virtual conference on hot topics and government contracting on June 23rd you can register with the link shown on the screen uh please join us this Friday's recovery each part of the flower and join us next Wednesday for more hot topics in federal contracting